Full question:
In some states and localities, scalping is against the law although enforcement is spotty
A. Using supply/demand analysis and words, demonstrate what a weakly enforced antiscalping law would likely do to the price of tickets.
B. Using supply/demand analysis and words, demonstrate what a strongly enforced antiscalping law would likely do to the price of tickets
Answer and Explanation:
A. For the first scenario, a weakly enforced antiscalping law would still allow the resale of tickets as it is not enforced properly. Therefore it's effect on price would remain as though there were no laws restricting scalping( scalping: price increase created by artificial shortage and bulk resale of tickets) . See the attached diagram for the supply and demand curve and price increase as a result of a weak antiscalping law
B. For the second scenario, scalping has no effect on price as antiscalping laws are strong and therefore there is no scalping. Price remains the same and does not change.
In diagram A for first scenario price increases from p1 to p2 and quantity decreases from q1 to q2 to indicate increase in price and quantity decrease for shortage respectively. This shows the effect of scalping on the market with weak antiscalping laws
In diagram B, price and quantity remain the same to show strong antiscalping laws
Answer:
Unit Selling Price Unit Variable Costs Unit Contribution Margin Contribution Margin Ratio
1. $570 $420
Unit Contribution Margin= Unit Sales Price Less Unit Variable Price =
$ 570- $ 450 = $150 (a)
Contribution Margin Ratio = Contribution Margin/ Sales = 150/570* 100= 26 % (b)
2. $490 $490 -$130= $360 (c) $130 ($ 130/ $490)* 100= 27 % (d)
3. $23000 (e) $22540 (f) $460 2
Unit Contribution Margin $460
Contribution Margin Ratio 2
Contribution Margin Ratio= Unit Contribution Margin/Sales= $460/ Sales =2 %
$460/ Sales =2 %
Sales = $ 460/2%= $ 23000
Sales - Unit Contribution Margin = $ 460
Unit Contribution Margin= Sales- $460 = $ 23000- $ 460= $ 22540
Answer:
Double-declining balance method
Explanation:
First we have to find the depreciation rate which is shown below:
= One ÷ useful life
= 1 ÷ 4
= 20%
Now the rate is double So, 40%
In year 1, the original cost is $15,000, so the depreciation is $6,000 after applying the 50% depreciation rate
And, in year 2, the depreciation is ($15,000 - $6,000) × 40% = $3,600
And, in year 3, the depreciation is ($15,000 - $6,000 - $3,600) × 40% = $2,160
Answer:
b. structural unemployment